An article in Oct. 9 USA Today, "Oh What a Tangled Web of Studies" ( in the Life Section), had some interesting statements. The article points out the conflicting results of various studies made of Internet/On line users.
Here are some of the things said:
"Much has been written about "churn"...It's a question of value, many who join decide it's not worth the cost. The one exception found is AOL: More than 4 out of 5 (82%) who have tried AOL still use it."
"40% of users have slow access speeds (9600 baud or less), 21% - 14400, 15% 28800." Thus, "...some of the really interesting things are out of reach... Despite frustrations, most users are pleased: 74% are satisfied overall, 84% say it's as good as they expected or better.
Among top complaints of WEB users: 78%- to slow, 55%- Info hard to find, 53%- too expensive."
"IntelliQuest says more than 21M nonusers plan to go on line in the coming year. International Data predicts 199M will use the Net by 1999. Morgan Stanley forecasts 200M will use email and 152M will use the Net and Web by 2000. "
First, with respect to speed. I typically connect to AOL at 28.8k bps. To surf the WEB I use Netscape Navigator and MS Explorer instead of AOL's built in browser. I notice no differences in speed as compared to the ISP connection provided at my workplace. Yes, AOL's built in browser is slower. But this is no longer the only available browser and I rarely use it. The statistics quoted in the article suggest to me that most complaints about speed are due to slow modems. As the 28.8k modems become more of the standard (and this is inevitable given the 56k modems soon to be available and thus lower prices for 28.8k modems), much of the complaints about speed will dwindle.
Second, with respect to churn, I find AOL to be a good value. Having free access to First Call Earnings Estimates, comprehensive Hoover's Company reports (abridged versions of the Hoover's reports are available via WSJ online but not nearly as informative), access to Motley Fool message boards and a convenient layout of information and services more than offsets the additional money I might spend when I exceed the alloted 20 hours. With the possibility of unlimited internet usage, I find AOL's service all the more compelling. Based on my satisfaction with AOL's service (and numerous others judging by the satisfaction rate), I believe that there will continue to be a place for online service providers. It's not right for everyone perhaps, but it is right for many--and potentially many more.
Last, with respect to achieving the 10 million subcriber goal. If the forecast for 21million new users for next year is correct, AOL just needs 20% of them to meet their 10M projection. |
